Myths And Facts About Foreclosures: Single Family Residences In SE Florida Market

Myths And Facts About Foreclosures: Single Family Residences In SE Florida Market

If you are of those people, who at the end of the day want to say “I’m glad I did” instead of “I wish I had”, read on. I promise you, you will find it essential or at least helpful:

1.    I hear there are so many foreclosures on the beach… Myth!

2.    I hear that there are a lot of empty units in the new buildings on the beach and we can buy them for pennies on the dollar…Myth!

3.    I hear that there are a lot of foreclosures; really expensive homes…Myth!

4.    I am going to wait; I hear the market is still going down…Myth!

5.    I am looking for 3-4 bedroom home, garage, newer, in a nice school district, my budget is $220,000- yes, was a possibility 6 months ago.

 Well, as you know me, I spent hours researching. Sending you the FACTS:

I. Homes for sale Broward: 4172 total units; total sold in 2009: 8512; REO’s Today: 299; Sold REO’s in 2009: total 3411

1.    Price range: under $200,000: 550 total homes

a)    REO-S ( i.e. Foreclosures): 96 ; Sold REO’s in 2009, total 1174= 31% of all foreclosures;

b)    Regular sales: (current): 550; sold: 2010

2.    Price range: between $201,000- $400,000- 1398 total homes;

a)    Foreclosures: 120; Sold REO’s in 2009: total 998

b)    Regular sales: (current): 1398; sold: 3588

3.    Price range: between $401,000- $700,000- 822 total homes

a)    Foreclosures: 18; Sold REO’s in 2009: total 135 (less than 4% of all cat. sales)

b)    Regular sales: (current): 822; sold: 3588

4.    Price range: between $701,000- $1,000,000- 470 total homes

a)     Foreclosures: 4; Sold REO’s in 2009: total 25 (less than 0.01% of all foreclosures)

b)  Regular sales: (current): 470; sold: 276

5.    Price range: above $1,000,000- 816 total units

a) Foreclosures: 2; Sold REO’s in 2009: total 7

b) Regular sales: (current): 816; sold: 276

I. Homes for sale Dade: 4628 total units, closed sales 2009: 6937; REO’s total 372; Sold REO’s in 2009: total 3931

1.    Price range: under $200,000: 620 total homes

a) Foreclosures: 180; Sold REO’s in 2009: total 1829

b) Regular sales: (current): 620; sold: 2317

2.    Price range: between $201,000- $400,000- 1363 total homes;

a) Foreclosures: 81 (only 6% of all homes); Sold REO’s in 2009: total 903

b) Regular sales: (current): 1363; sold: 2137, the fastest absorption rate;

3.    Price range: between - $401,000- $700,000- 808 total homes

a) Foreclosures: 11; Sold REO’s in 2009: total 142

b) Regular sales: (current): 808; sold: 754

4.    Price range: between $701,000- $1,000,000- 434 total homes;

a) Foreclosures: 3; Sold REO’s in 2009: total 10

b) Regular sales: (current): 434; sold: 250;

5.    Price range: above $1,000,000- 1239 total homes

a) Foreclosures: 5 (only 0.4% of all); Sold REO’s in 2009: total 5

b) Regular sales: (current): 1239; sold: 387

Now, that you have seen the OFFICIAL figures, you can draw the following conclusions:

  1. It is evident that the lowest tiers (pricing 100-400,000) are moving towards very aggressive seller’s market, please observe the absorption rates.
  2. It is evident that the luxury market is barely affected by the economic down turn; there are hardly ever any foreclosures. So, I am real curious where are all these buyers (who are convinced that there’s tons of foreclosures), getting their information?

Our reports further show, that close to 95% of the foreclosures are selling at asking or above asking price.  They go in most cases to cash buyers, since there is a real crowd bidding for them. So, when you find just that sweet deal be wise instead of being a “wise guy”!

As it has always been, housing is our bedrock investment. It will continue to generate a nest egg for us long after we’ve turned off the television and forgotten what was said in the sensation-seeking story of the moment.

I hope, you will find these points helpful. For those of you who still do not own your home or, that great investment property you have been dreaming about, please call me now. Join those people, who at the end of the day can say “I’m glad I did” instead of “I wish I had”.

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

PS: Stay tuned and look for my next report on how to buy foreclosures.

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